VYM vs YLD
Vanguard High Dividend Yield ETF vs Principal Active High Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | VYM | YLD | Winner |
|---|---|---|---|
| Expense Ratio | 0.04% | 0.39% | |
| AUM | $79.0B | $580M | |
| Dividend Yield | 2.86% | 7.26% | |
| Holdings | 568 | 148 | |
| YTD Return | +16.53% | +3.32% | |
| 1Y Return | +25.03% | +5.15% | |
| 3Y Return (annualized) | +18.54% | +8.21% | |
| 5Y Return (annualized) | +12.25% | +4.53% | |
| Volatility (annualized) | 14.6% | 8.7% | |
| Max Drawdown | -58.8% | -30.3% | |
| Fund Family | Vanguard (US) | Principal Funds | |
| Category | Equity | Allocation/Balanced | |
| Inception | Nov 10, 2006 | Jul 8, 2015 |
VYM vs YLD Performance
Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US) and Principal Active High Yield ETF (YLD) is a ETF from Principal Funds. Over the past year VYM returned +25.03% while YLD returned +5.15%. Year to date, VYM is up 16.53% versus a gain of 3.32% for YLD.
Over three years, VYM compounded at +18.54% per year against +8.21% for YLD; over five years the annualized figures are +12.25% and +4.53% respectively. Across the full 11-year window we track, VYM has the edge at +7.10% annualized vs +2.59%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 8.7% for YLD. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -58.8% for VYM and -30.3% for YLD. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.81. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VYM charges 0.04% per year while YLD charges 0.39%. On a $10,000 position that is $4 vs $39 annually, a gap of $35 per year that compounds over a long holding period. On income, VYM currently yields 2.86% against 7.26% for YLD.
Holdings Overlap
VYM and YLD share 0 holdings out of 667 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VYM or YLD?
VYM has an expense ratio of 0.04% while YLD charges 0.39%. VYM is the cheaper option. On a $10,000 investment, that is $35 per year of difference.
Which performed better, VYM or YLD?
Over the past year VYM returned +25.03% vs +5.15% for YLD, so VYM leads on 1-year performance. Over the longest common window we track (11 years), VYM annualized +7.10% vs +2.59% for YLD. Past performance does not guarantee future results.
Which is riskier, VYM or YLD?
VYM has been the more volatile fund at 14.6% annualized versus 8.7% for YLD. Worst drawdown: VYM -58.8% vs YLD -30.3%.
Should I hold both VYM and YLD?
VYM and YLD have a monthly-return correlation of 0.81, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VYM and YLD?
VYM and YLD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 667 unique securities.
Which pays a higher dividend, VYM or YLD?
VYM yields 2.86% while YLD yields 7.26%, so YLD currently pays the higher dividend yield.
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